Robinhood’s Chief Legal Officer Alleges SEC is Hampering Crypto Innovation Using Aggressive Tactics – Brave New Coin
Robinhood’s Chief Legal Officer, Daniel Gallagher, criticized the SEC’s approach to crypto regulation, calling it “scorched earth” and warning that it hinders innovation and harms U.S. competitiveness.
During a House Financial Services Committee testimony, Gallagher accused the SEC of employing a destructive strategy that is detrimental to consumers and stifles innovation in the digital asset industry, impacting the U.S.’ ability to compete globally.
Gallagher, a former SEC commissioner, highlighted the lack of clear regulatory guidelines for digital assets, creating uncertainty and fear in the industry. This regulatory ambiguity hampers companies like Robinhood, forcing them to operate in a regulatory gray area that limits their growth and innovation.
Watch the hearing on YouTube
Instead of fostering innovation while protecting investors, Gallagher criticized the SEC’s “regulation by enforcement” approach, which involves lawsuits and actions against crypto companies without clear guidance. This method stifles innovation and drives companies to seek more favorable regulatory environments abroad.
Gallagher urged the SEC to adopt a more constructive approach, creating a provisional regulatory regime to provide clarity and support for businesses in the digital asset space. This would benefit consumers, foster innovation, and ensure the U.S. maintains its leadership in the evolving digital economy.
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